Here is a true story about what can happen to a "star" trader.

charliechan

Experienced member
1,008 119
cheers arb that would be great. i have the feb/march uk edition but have only flicked through it - is it in there?

has leeson had enough of party poker then? if he did his beans there, i cant see him doing that well in fx - not when gamma jammer is around anyway :)
 

mickandpete

Active member
176 3
Lesson? FX?
I thought his experience was in Nikkei Futures
His crime was to trade outside the "limits" set by Barings and not disclose the trades
Silly old Barings were completely duped
This stortyseems to suggest Hunter traded with the knowledge of Amaranth
That is completely different and a lot more scary
 

pssonice

Established member
900 12
a "star" trader has to understand the language of price pattern

this guy enhanced his portefolio by random and in time but started too late
 

TWI

Senior member
2,536 254
Former Amaranth Trader Hunter Starts Commodity Funds (Update1)

2007-03-23 05:47 (New York)





(Adds hedge-fund investments in third paragraph, background

on LTCM and Amaranth from ninth paragraph.)



By David Scanlan and Reg Curren

March 23 (Bloomberg) -- Brian Hunter, the Amaranth Advisors

LLC energy trader who caused the biggest hedge-fund collapse

ever, is raising money for new commodity funds, documents sent

to potential investors show.

Hunter set up Solengo Capital Advisors and hired former

Amaranth colleagues including Chief Operating Officer Shondell

Sabad and money manager Shane Lee. The firm, with offices in

Hunter's hometown of Calgary and in Greenwich, Connecticut, aims

``to become a multibillion-dollar commodity investment

vehicle,'' according to the documents.

Amaranth failed six months ago after Hunter's bet on

natural-gas prices triggered $6.6 billion in losses. Hedge funds

attracted a record $126.5 billion last year from investors

seeking higher returns than they might get from stocks and bonds.

``It's a shocker, given his recent track record,'' said

Shannon Burchett, who traded oil for JPMorgan Chase & Co. and

Citigroup Inc. in the 1990s and now runs Risk Limited Corp., an

energy consulting firm in Dallas. ``There's a strange phenomenon

that failed fund managers seem to be able to reincarnate

themselves and re-attract money.''

Hunter didn't return a phone call yesterday seeking comment.

Nor did Sabad, most recently head of crude oil trading at

Toronto-based TD Securities.



Oil, Gas Funds



Hedge funds are mostly private and unregulated pools of

capital where managers can buy or sell any assets, participating

substantially in the profits of the money invested. They oversaw

$1.43 trillion as of Dec. 31, according to Chicago-based Hedge

Fund Research Inc.

Solengo will offer funds tailored to specific markets such

as crude oil, natural gas and base metals, the documents show.

The hedge fund will charge investors 2 percent of assets and 20

percent of any investment gains.

``You'd think investors would know the history and have

considerable hesitation about putting large blocks of money

under the same management team,'' Burchett said in an interview

yesterday.

Some hedge-fund managers have revived their careers after

spectacular losses. John Meriwether, who founded Long-Term

Capital Management LP and oversaw the firm's collapse amid the

Russian debt default of 1998, came back with JWM Partners LLC

one year later.



LTCM Collapse



LTCM leveraged $2.3 billion of capital into holdings of

about $125 billion before its collapse, which roiled financial

markets and led to a bailout organized by the Federal Reserve.

Amaranth, by contrast, oversaw $9.5 billion of assets. The

firm, founded by Nicholas Maounis, employed 420 people before

its collapse in September. Gas prices fell 26 percent in August

and another 7 percent in September, saddling the Greenwich-based

firm with $4.6 billion in losses during one week alone.

Solengo's Shane Lee, along with Matthew Calhoun, another

former colleague of Hunter's at Amaranth, will manage a natural-

gas portfolio. Karl Koster will be head of system engineering,

or risk management, the documents show.

``We want to hire the best portfolio managers in every

market and let them do what they do best -- make money,'' the

fund managers said in the documents.

Solengo's Calgary office is on 17th Avenue, on the second

floor of a building being renovated, about 30 blocks southwest

of Calgary's downtown. Calgary is Canada's fifth-biggest city

and the base for its oil and gas industry.

The building, with red brick and metal siding, was home to

a Calgary radio station until 1999, before it was turned into

office space. About 10 people were sitting yesterday at desks

with computer screens and telephones in the middle of a room

with a concrete floor.



--With reporting by Katherine Burton in New York. Editors:

Pickering (shw/pas).



Story illustration: For Bloomberg's hedge-fund home page,

See {HFND <GO>}.



To contact the reporter on this story:

David Scanlan in New York at +1-212-617-8738 or

[email protected].
 

Quenkish

Active member
108 2
Quenkish, care to enlighten us? or is this some shoot from the hip speculation?

I think everyone can that the entire hedge fund industry was a bubble, look at them all blowing up now.
 

MrGecko

Senior member
2,778 789
IIRC, didnt Dealbreaker.com (or some such) get into a little hot water because they printed Hunters'new prospectus online? Something along the lines of: "We will keep hold of him by the short (no pun intended) and curlies, and if you would prefer to invest in something that avoids him like the plauge, we understand".....?
 

fifty2aces

Well-known member
452 127
IIRC, didnt Dealbreaker.com (or some such) get into a little hot water because they printed Hunters'new prospectus online? Something along the lines of: "We will keep hold of him by the short (no pun intended) and curlies, and if you would prefer to invest in something that avoids him like the plauge, we understand".....?

Yeah, but think they removed it - presumably due to copyright:

Dealbreaker - A Wall Street Tabloid - Business News Headlines and Financial Gossip - The Famed Solengo Brochure
Dealbreaker - A Wall Street Tabloid - Business News Headlines and Financial Gossip - Hedge Fund To DealBreaker: Please Shut Up!
 

richi rich

Active member
117 19
i guess hes still walking around with his pockets full though...must have still banked at least a few mill
 
 
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